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Chinese Futures Market Under The Socialist Market Economy

Posted on:2004-05-24Degree:MasterType:Thesis
Country:ChinaCandidate:Y Q CuiFull Text:PDF
GTID:2156360092993343Subject:Scientific socialism
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After the Third Session of the 11th Plenary Central Committee, Chinese futures market was initiated as a means to perfect the market economy system on its road to socialism with Chinese characteristics. The theories concerning the market economy included in the Deng Xiaoping Theory is its principal theoretical basis. To establish and perfect the socialist market economy system is its economic condition and its immediate cause. Under the guidance of Deng Xiaoping Theory and the important of the "Three Represents", thanks to the joint efforts of the whole Party and the people of all ethnic groups, we have attained the objectives of the first two steps of the three-step strategy for Chinas modernization drive, and, by and large, the people have become well-off. This is a great victory for the socialist system and a new milestone in the history of the development of the Chinese notion. The economy of China has gradually got out of the economy of shortage, and reached the stage of surplus. At the same time, during the process of establishing and perfecting socialist market economy mechanism, the inherent characteristics of market economy, like spontaneity, post-occurrence, and microcosmic are becoming apparent. The GDP of China has become Number 6 in the world, and the productivity and consumption of many products rank first in the world. The fluctuation of the prices of these products will seriously affect the normal operation of national economy. That is why we should have futures market. Through futures market and futures transactions, risks can be avoided and the function of price discovery can function better. This is not only the requirement but also the necessity of socialist market economy.Futures market under the socialist market economy has experienced fivestages and achieved a lot, of course, and problems exist at the same time. These five stages are: the preparative stage for the establishing of Chinese futures market; the experimentation and the initial development stage; the stage of malformation because of over investment; the formative stage of Chinese futures market under reinforced regulation; the normalization and healthy development stage of the futures market. The main achievements are: a relatively normative futures market has come into being; the establishment of a comprehensive uniform regulatory system of the futures market; the development of various kinds of transactions; an advanced and modern transaction system even in the world; the training of a large group of theoretical and practical professionals. The existing problems can be classified into two main categories. One is that from the characteristics of market economy: enterprises still lack autonomy; the inequality of market participants; the market system is imperfect; the legal system is not healthy; we still need to open wider to the outside world. Second is from the perspective of the structure of the futures market: we still do not have a correct understanding of the relationship and nature between futures exchange, futures brokerage firms and investors (hedgers and speculators).To solve and ameliorate the existing problems is to serve better the modernization of China and make greater contributions to the building a well-off society in an all-round way. Suggestions are put forward by the author of this paper: to develop the agricultural futures market of China according to its own situation; to make greater efforts to develop the industrial futures market; to develop the monetary futures with caution; to speed up the formulation of pertinent regulations and laws, especially the drafting of law of futures.
Keywords/Search Tags:socialist market economy, futures market, hedge, price discovery
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